Peter Warren Automotive Holdings (PWR) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached AUD 1.27 billion, up 3.2% year-over-year, driven by growth in used cars, service, parts, finance & insurance, and aftermarket.

• Underlying profit before tax (PBT) rose to AUD 12.5 million, an increase of AUD 5.4 million, with interim dividend lifted by over 80% to AUD 0.03 per share.

• Gross margin improved to 16.2% from 16.1% in FY 2025, reflecting stable and slightly rising profitability.

• Acquisition of Wakeling Automotive adds 16 brands and 30 dealerships, expected to be immediately EPS accretive and deliver 20% revenue growth.

• Leadership team strengthened with new COO, CTO, and CFO transition.

Financial highlights

• Revenue up 3.2% year-over-year to AUD 1.27 billion, with strong contributions from high-margin segments.

• Gross profit increased by AUD 6.6 million, with gross margin stable at 16.2%.

• Operating expenses rose by 2.4%, but OpEx as a percentage of revenue fell to 11.9%.

• Net debt reduced to AUD 61.5 million from AUD 83.8 million, with net debt/property LTV at 27%.

• Interim dividend declared at AUD 0.03 per share, up from AUD 0.016 last year.

Outlook and guidance

• Continued focus on high-margin areas (used cars, service, parts, F&I) and leveraging technology to drive future earnings.

• Wakeling acquisition to further boost revenue and EPS upon completion.

• Ongoing investment in digitization and AI to enhance efficiency and customer experience.

• Market remains highly competitive and fragmented, with further M&A activity anticipated.

• Gross margin expected to improve further, with management targeting incremental gains over time.